Cheap Car Insurance for Teens: 3 Ways to Save

Many families look for cheap car insurance for their teenagers every year. Although coverage is easy to find, the outrageous cost of premiums is a real problem for many families.

Teen auto insurance premiums will vary in cost based on state and local pricing factors, but average annual rates in the United States for teens exceed $3,500. Another way to estimate teen rates in your area is to multiply the annual parental rates by 2.5 to 3 times. This will give you a general idea of ​​the expense you are about to incur.

Since teen car insurance can really take a toll on family finances, it’s wise to seek out and take advantage of all available discounts offered by insurance companies. Here are 3 important tips to save money on car insurance for teens:

1. Secure the correct vehicle. Adolescents will already be classified in the highest risk class. Don’t increase your premium costs by allowing your teen to drive certain types of cars. Avoid luxury cars, any car with a high output engine, small and light cars, and large SUVs (SUV insurance costs are not only higher due to the risk of rollover, but they are also more difficult to find). maneuvering in and out of traffic for a new driver). Sometimes it will be cheaper to buy a slightly older used midsize vehicle for the teenager. You can also increase the deductible, and if the car is paid off, collision and comprehensive insurance can be eliminated for even more savings. Cars that are not stolen as frequently will also be less expensive to insure.

2. Take advantage of a good student discount if possible. When a teen gets good grades, usually at least a B average, they generally qualify for this discount. This can add up to 10-15% savings on insurance rates for the teenager. If the teen is in college and doesn’t drive often (limited access to a vehicle), she can apply for a distant student discount with many insurance providers.

3. Defensive Driving Courses. Most insurance companies will offer discounts if a new driver successfully completes a defensive driving course. These are available in most cities and there are many online resources to help. This shows the insurer that the teen is interested in being a responsible driver and also helps with the education process. Parents should take the time and energy to train the teen driver and set expectations and rules for them to follow. This will be time well spent, as early positive driving knowledge and skills contribute to the development of a safe driver.

Most of us are of the opinion that there is no such thing as cheap car insurance for teens, but if you take advantage of the various options you have to lower the cost, the savings can really add up.